The 1940 South American Basketball Championship , the eighth South American Basketball Championship , took place between January 20 and 28, 1940 in Montevideo , Uruguay , which was the second time the championship was held. The winner was the Uruguayan national team , which won the title for the third time. At the same time, the host of the championship was also the winner of the tournament for the fourth time in a row. For the first time, the Paraguayan national team took part in the tournament.
Each team played against each opponent once, so that each team had to play five games. There were two points for each win and one point for a defeat. The team, which was first after the encounters, became South American champions in 1940.